Tech, Telecom Shares Drag World Markets

Stocks fell overseas Monday, pulled lower by technology and telecom issues. In Tokyo, the Nikkei index fell to another 17-year low.

U.S. markets were closed for the Labor Day holiday. They will reopen today.

In Japan, the 225-issue Nikkei stock average extended its losing streak to five straight sessions, dropping 303.83 points, or 2.8%, to 10,409.68--its lowest close since Aug. 14, 1984.

The market dropped in response to Friday’s warnings by electronics giants Hitachi and Sanyo Electric that near-term earnings were going to be lower than expected.

The recent strengthening of the yen also weighed on the minds of exporters that rely on a weak yen to keep their products competitive in overseas markets.

Japanese officials suggested the government may start selling yen to prevent the currency’s gain--5% against the dollar so far this quarter--from hurting the economy.

The yen was trading Monday in London at 119.27 per dollar, off slightly from the 118.80 level it reached Friday in New York.

In Taiwan, shares finished lower as investors cashed in profits in financial-sector stocks that had risen significantly after the government proposed a 50% cut in the capital gains tax on property sales.

The weighted price index of the Taiwan Stock Exchange slid 1.2% to 4,454.77.

Among other Asian markets Monday, Hong Kong’s blue chip Hang Seng index fell 187.84 points, or 1.7%, finishing at 10,902.64, its first close below 11,000 since March 1999. Traders said prices were pushed lower after the government said Friday that the territory’s economy grew only 0.5% in the second quarter, sparking fears of a recession.

In South Korea, the composite stock index dropped 1.8% to 541.83.

European stock markets closed mostly lower, pulled down as negative sentiment on the health of the global economy reached across sectors. Tech shares led the way.

In London, a manufacturing trade group reported that British manufacturing retreated in August for the sixth consecutive month. A bearish report on Britain’s service sector added to traders’ concerns.

In Paris, advertising industry watcher Zenith Media announced a downward revision in its advertising growth estimate for 2001.

Britain’s FTSE 100 stock index lost 32.90 points, or 0.6%, to 5,312.10; France’s CAC-40 index slid 59.54 points, or 1.3%, to 4,629.80.

Germany’s DAX tumbled 94.07 points, or 1.8%, to close at 5,094.10, a new low for the year. The decline was led by software maker SAP, which fell 6% on fears it soon will issue a profit warning.

In Latin America, the Mexican market’s key index slid 1.2% to 6,233.29 in thin trading.

Brazil’s main index eased 0.3% to 12,800, bouncing off 21-month lows earlier in the day.